Tuesday, September 12, 2017

Low Inventory Still Impacting Northern California

September 11, 2017Sparse housing inventory continues to affect the Northern California market. The California Association of Realtors’ latest report indicates that the San Francisco Bay Area endured a large drop in pending sales due to the lack of available housing. In fact, it dipped 11.5 percent since last July. The report also indicates that San Francisco and San Mateo counties were both down double-digits, 11.0 percent and 21.4 percent, respectively. For homeowners on the fence about selling, the lack of inventory makes it a great time to list because many patient home buyers are prepared to come in with solid offers. Read more about what’s happening, coming directly from our Northern California Coldwell Banker offices:
From the trenches...:

SF Peninsula – Half Moon Bay’s market remained competitive. The luxury market continued with strong demand. Average days on the market was just 17, with a median sales price of $2 million.
Menlo Park experienced a fast-paced market with no slowing. Sellers were encouraged to list their homes instead of trying to time the market or wait for a more optimal time.
Redwood City had a lack of inventory. Homes priced under $1 million brought in multiple offers. In the $1 million-plus market, homes sat on the market longer before closing.

Santa Cruz County- Offices in Santa Cruz saw a strong month. Average sales prices have been increasing steadily for the last five years by $30,000 to $90,000. This year is no different, with the average sales price of $950,000 and an average list price of $1,050,000. Buyers have been more aggressive in their offers. The luxury market in Santa Cruz peaked in comparison to the last few months with an average of just 50 days on the market (instead of 54 days), and experienced significantly more sales above the $1 million mark over past months.

Silicon Valley – Cupertino continues to experience a lack of inventory. However, the luxury market is still active up to $4 million. Low inventory was also a key factor in Los Gatos’ market, creating a similar dynamic as in Cupertino.
Gilroy and Morgan Hill also endured a lack of inventory causing multiple offers and high closing prices. Even in those markets favoring the supply-side, sellers should be prepared to choose quickly when presented with multiple offers. To submit a winning offer, buyers must put their highest offers first and make the transaction easier for the sellers.
San Jose remained active even with declining inventory. Because of the decreased supply, prices have slightly increased. Sellers can take advantage of the high demand. Buyers should think long term and be prepared to make a strong offer. Factors such as multiple offers or slightly higher asking prices should not deter them from putting in offers.
Saratoga’s market saw an increase of 21 percent in the average sales price year-over-year. The luxury market remained active with five listings and four sales.